By now you must have a good idea on the Roth IRA. Mainly the benefits of Roth IRA are

1. Tax-Free Growth: The main benefit of a Roth IRA is that investments grow tax free within Roth. However, you do need to meet a few conditions to receive the investment growth income tax free. First, you need to have had a Roth IRA in existence for at least five years. Second, for a tax-free and penalty-free distribution of investment gains, one of the following conditions needs to be met: reach age 59.5, death, disability, or $10,000 of qualified first time home-buying expenses.
2. Access to Funds: The easy access you have to your own contributions to the Roth IRA. For instance, if you put $5,000 dollars into a Roth IRA, invest it in stocks, and the value grows to $10,000, you can still withdraw your initial investment of $5,000 at any time without paying income taxes or penalties. This is because Roth IRA withdrawals allow you to withdraw your contributions first before having to tap into any of the investment gains.
3. Lower Taxes in Retirement: Roth IRAs also offer great tax savings in retirement. Because Roth IRA withdrawals of both contributions and investment gains are income tax free. IRA distribution does not increase a retiree’s tax liability, tax rate, Medicare premiums, or Social Security taxes.
4. No RMDs: Roth IRA account balance is not subjected to required minimum distributions after the owner of the account reaches age 70.5. Most other retirement accounts, like the 401(k) and traditional IRAs, are subject to required minimum distributions. A Roth IRA means that seniors have more control over when they spend their money, and are not forced to take withdrawals. This also allows the money to remain invested and to continue to grow in a tax-free vehicle for a longer period of time.

However, Roth IRAs have a income restriction that restricts high income bracket to contribute to Roth IRA.

See here the income limit for Roth IRA contribution.

But there is a way to enjoy benefits of Roth IRA, called "Backdoor Roth IRA".

A backdoor Roth IRA is a convenient loophole that allows high-income individuals to enjoy all the tax benefits that a Roth IRA has to offer by converting Traditional IRA to Roth IRA.

Traditional IRA comes with deduction limit, while Roth IRA comes with contribution limit. Keep in mind, in any given year the combines contribution to all IRA should not exceed below limits.

With a backdoor Roth, you basically start with a traditional IRA, transfer it to a Roth IRA. In this case, taxpayers must pay tax on the deductible portion of the traditional IRA, then let investments grow tax-free and take advantage of tax-free withdrawals later. It’s that simple and it’s perfectly legal.

How to Create a Backdoor Roth IRA?

You might feel intimidated by the idea of making a backdoor Roth IRA, but the truth is that it's really not that difficult to put in place. Convert a traditional IRA to an IRA Roth in a few simple steps:

Phase 1: Invest in a traditional IRA.

As you are aware, there are no income restrictions for a traditional IRA, which means that anyone can open a traditional IRA to contribute to it. However, you can deduct for AGI up to certain limits.

Look up the deduction limit here.

If you want to open a transaction IRA with E-Trade click here.

Step 2: Convert the traditional IRA into a Roth IRA.

Once you have invested money into your traditional IRA, the next thing you need to do is convert these funds into a Roth IRA. This can be accomplished in three ways:

• Rollover: In this scenario, you will receive a check from your IRA provider and you must deposit this money into a Roth account within 60 days. Doing a backdoor Roth this way is risky, because if you forget to deposit that money for whatever reason, you’ll have to pay a withdrawal penalty on top of the taxes you owe. My recommendation would be to do one of the following transfers.
• Trustee-to-trustee transfer: If you have your traditional and Roth IRAs at different financial institutions (or want to open a new Roth account at a different institution), you can steer the institution that holds your traditional IRA to transfer the money to the Roth at the other institution.
• Same-trustee transfer: Have your IRAs with the same financial institution? Fantastic! Simply ask your financial institution to transfer money from your traditional IRA into your Roth account.

There are no restrictions on how much you can convert to a Roth IRA.  The transfer from the traditional IRA to the Roth IRA is considered a conversion, but not a contribution, therefore the contribution limit is not applicable.

Step 3: Pay the taxes you owe on the money you invested.

Since the contribution traditional IRA is tax deductible, the taxpayer need to pay tax on such conversion. Note that taxpayer need to pay only on the deductible portion of traditional IRA + income there on.

So if you put $6,000 into a traditional IRA and want to convert that into a Roth IRA, you’ll have to pay taxes on that $6,000. On top of that, you’ll have to pay taxes on whatever money your investments earned between the time you invested inside the traditional IRA and when you convert it to a Roth.

And heads up! The money you’re converting will probably count as income for the year and—depending on how much you earn and how much money you’re converting—that might bump you into a higher bracket for the year.

I can’t stress this enough: You should only do a backdoor Roth IRA if you have the cash on hand to pay the taxes you owe without taking money out of the traditional IRA itself. That would just undercut your future gains and that defeats the purpose of the conversion in the first place.

Step 4: Repeat the process every year and enjoy tax-free growth!

Repeat this process and benefit from the beauty of IRA Roth.

Transfer from one IRA to another IRA doesn’t attract penalty. Refer exception to early distribution.

Thanks, Surya Padhi. Contact Me, if you need more information.